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Employment effects of economic sanctions in Iran

journal contribution
posted on 23.11.2021, 09:25 authored by Ali Moghaddasi-KelishomiAli Moghaddasi-Kelishomi, Roberto Nistico
This paper investigates the effect of economic sanctions on employment. We exploit the imposition of a series of unexpected and unprecedented international economic sanctions on Iran in 2012 and estimate the short-run effects of the change in import exposure on manufacturing employment at the industry level. Our estimates indicate that the sanctions led to an overall decline in manufacturing employment growth rate by 16.4 percentage points. However, we uncover significant asymmetric effects across industries with different ex-ante import shares. Interestingly, the effects are mostly driven by labor-intensive industries and industries that heavily depend on imported inputs. This suggests that the overall negative impact of the sanctions on employment might have been largely due to the decline in productivity experienced by industries with a high propensity to import inputs from abroad.

History

School

  • Business and Economics

Department

  • Business

Published in

World Development

Volume

151

Publisher

Elsevier

Version

AM (Accepted Manuscript)

Rights holder

© Elsevier

Publisher statement

This paper was accepted for publication in the journal World Development and the definitive published version is available at https://doi.org/10.1016/j.worlddev.2021.105760.

Acceptance date

20/11/2021

Publication date

2021-12-07

Copyright date

2021

ISSN

0305-750X

Language

en

Depositor

Dr Ali Moghaddasi Kelishomi. Deposit date: 22 November 2021

Article number

105760